Everything you need to know about insurance basics, like coverage types, limits, cost and more.
Paying for Life Insurance
Having life insurance may be part of your long-term financial planning, and if you already have coverage to help secure your loved ones’ future, good for you! Sometimes, it can be difficult to understand the ins and outs of your life insurance policy — but we’re here to clear up any confusion.
Let’s take a closer look at the types of life policies available, and how paying for life insurance works for each.
Some of our DreamSecure Whole Life policies require premiums to be paid only for a limited number of years. A limited pay life policy like our Children’s Whole Life Insurance is a great idea for kids because it works in a few key ways. First, the policy contains a cash value feature, which grows tax-deferred. And secondly, the child will have a head start on coverage they may need as an adult.
And with the 10- or 20-year payment options, the policy could be paid in full before the child goes to college! Our DreamSecure Whole Life Pay to 100 Life Insurance policy guarantees level premiums — stretched out until age 100 — and it’s available to both children and adults.
How Long Do I Pay for Whole Life Insurance?
Our whole life insurance provides a set amount of coverage that lasts for your entire life. Your premiums stay the same for the entire length of your payment period. Better still, you get to choose the payment period that makes the most sense for you – which, depending on the product, may be 10 or 20 years or to a certain age, like age 100. And as long as you make all of the necessary payments and follow other policy terms, your beneficiaries will receive the death benefit whenever you pass away.
There are a variety of payment terms to choose from. Some of those choices might include:
- Pay the premium at a set rate until age 100.
- Pay the premium for a certain number of years. Keep in mind, you’ll pay higher premiums than if they were spread out throughout your lifetime, but once the payments are done, you’ll still be insured for life.
What Happens If You Don’t Pay Your Premium?
When you don’t pay your premium for a life insurance policy, your coverage can lapse — meaning you’ll no longer be covered and, in the event of death, your beneficiary will not be paid the death benefit. Typically, a life insurance company offers a grace period, which is the amount of time you have past the due date to pay your premium.
If you pay within the grace period defined in your policy, your coverage can stay in force and you won’t have to reapply for life insurance.
Paying for Your American Family Life Insurance Policy
Here’s a quick look at some of the most common ways you can pay for your life insurance policy from American Family Life Insurance Company:
Mail in a payment
You can pay quarterly, semiannually or yearly for your life insurance by mailing in your premium. For American Family Life Insurance Company policies, send your payment to:
American Family Life Insurance Company, 6000 American Parkway, Madison, WI 53783
Set up automatic payments
To pay by automatic funds transfer, contact your American Family Insurance agent or call our customer care center at 1-800-MYAMFAM (1-800-692-6326). Be sure to have your financial institution's information on hand.
Automatic payments are scheduled on a reoccurring basis. Payment types accepted are a checking or savings account. You choose the payment date, amount and payment method. You can change these options or stop a scheduled payment. You’ll also get an email reminder before your payment date.
You will be required to complete and sign an authorization form stating that you give American Family Insurance permission to automatically deduct funds from your account.
Pay by phone
Give us a call at 1-866-424-8002 to use our automated pay by phone system.
Make a payment with Pay Now
You can pay your bill directly from your personal checking, savings or debit/credit card account with Pay Now. You’ll need to enter your financial information, billing account details and policy information each time you make a payment using Pay Now.
Protect What Matters Most With Life Insurance
This is a brief description of coverage and is subject to policy and/or rider terms and conditions which may vary by state. Fixed and guaranteed premiums are statements about the policy as determined at issue, and any changes made to a policy may affect the premium and are subject to our underwriting rules. The words lifetime, lifelong and permanent are subject to policy terms and conditions. DreamSecure Whole Life Insurance policies mature at age 121. Please check with an American Family agent for details on coverages and restrictions.
Policy Forms: ICC18-33 (10), ICC18-33 (15), ICC18-34 (20), ICC18-35 (30), L-33 (10)(ND), L-33 (15)(ND), L-34 (20)(ND), L-35 (30)(ND), L-33 (10)(SD), L-33 (15)(SD), L-34 (20)(SD), L-35 (30)(SD), ICC18-36 (10), ICC18-36 (15), ICC18-36 (20), ICC18-36 (30), L-36 (10)(ND), L-36 (15)(ND), L-36 (20)(ND), L-36 (30)(ND), L-36 (10)(SD), L-36 (15)(SD), L-36 (20)(SD), L-36 (30)(SD), ICC17-225 WL, L-225 (ND) WL, L-225 WL, ICC17-227 WL, L-227 (ND) WL, L-227 WL, ICC17-223 WL, L-223 (ND) WL, L-223 WL, ICC17-224 WL, L-224 (ND) WL, L-224 WL, ICC17-228 WL, L-228 (ND) WL, L-228 WL